Hamilton Lane INC Q4 FY2025 earnings call

• Total asset footprint grew to $958 billion at fiscal year-end 2025, with AUM at $138 billion and AUA at $819 billion.
• Total management and advisory fees and fee-related earnings saw significant year-over-year growth.
• Board approved a 10% increase to the annual fiscal dividend.
• Market volatility and uncertainty are being navigated, with opportunities capitalized on.
• Specialized funds and customized separate accounts showed growth, with specialized funds fee earning AUM up 16%.
• Evergreen platform continues to scale, with new products launched and strong net inflows.
• Technology investment in 73 Strings, an AI-powered platform for private markets data solutions.
• Changes in fee recognition and reporting, including incentive fees and exclusion of stock-based compensation from fee-related earnings.

At fiscal year-end 2025, Hamilton Lane's total asset footprint was $958 billion, a 4% year-over-year increase. AUM stood at $138 billion, growing $14 billion (11%) compared to the prior year. AUA was $819 billion, up over $23 billion (3%). Total management and advisory fees for fiscal 2025 were $514 million, a 14% year-over-year growth. Fee-related earnings were $276 million, up 34% versus the prior year. Specialized funds fee earning AUM ended fiscal 2025 at $33 billion, having grown $4.5 billion (16%). Customized separate accounts were $39 billion, growing by $1.8 billion (5%).

• Board approved a 10% increase in the annual fiscal dividend to $2.16 per share.
• Expect margin to remain stable despite reporting changes, with continued investment in the business for future growth.
• Pipeline of new clients and re-ups for separate accounts remains robust, expected to flow through as markets normalize.
• Continued growth and scaling of the Evergreen platform with planned new product launches.

• Market volatility and uncertainties that may cause actual results to differ from projections.
• Risks related to forward-looking statements and compliance with SEC regulations.
• Impact of slow exit activity and institutional fundraising market on separate accounts growth.

Q: How does the margin outlook under the new reporting regime look relative to history?

A: The margin compared to prior margin is up because of changes, but the macro view on margin remains stable with continued investment in the business.

Q: Are the fees to intermediaries on new products changing versus preexisting products?

A: Distribution fees are predominantly upfront in wires, with no real change seen.

Q: What's the view on May gross inflows and outflows?

A: May looks very strong with no change in redemption or investor appetite seen, and volatility creating opportunities to discuss private market moves with advisers.

Q: How is institutional interest in Evergreen funds viewed and potential fee compression?

A: Institutional interest is early, fee compression is yet to be determined with no current signs, and it's an area needing education.